diff --git a/runtime/indent/ruby.vim b/runtime/indent/ruby.vim
index ce078f2..ff22bbb 100644
--- a/runtime/indent/ruby.vim
+++ b/runtime/indent/ruby.vim
@@ -1,11 +1,20 @@
 " Vim indent file
-" Language:	Ruby
-" Maintainer:	Gavin Sinclair <gsinclair@soyabean.com.au>
-" Last Change:	2003 May 11
-" URL: www.soyabean.com.au/gavin/vim/index.html
-" Changes: (since vim 6.1)
-"  - indentation after a line ending in comma, etc, (even in a comment) was
-"    broken, now fixed (2002/08/14)
+" Language:     Ruby
+" Maintainer:   Gavin Sinclair <gsinclair at soyabean.com.au>
+" Developer:    Nikolai Weibull <source at pcppopper.org>
+" Info:         $Id$
+" URL:          http://vim-ruby.rubyforge.org/
+" Anon CVS:     See above site
+" Licence:      GPL (http://www.gnu.org)
+" Disclaimer:
+"    This program is distributed in the hope that it will be useful,
+"    but WITHOUT ANY WARRANTY; without even the implied warranty of
+"    MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+"    GNU General Public License for more details.
+" ----------------------------------------------------------------------------
+
+" 0. Initialization {{{1
+" =================
 
 " Only load this indent file when no other was loaded.
 if exists("b:did_indent")
@@ -13,55 +22,363 @@
 endif
 let b:did_indent = 1
 
+" Now, set up our indentation expression and keys that trigger it.
 setlocal indentexpr=GetRubyIndent()
-setlocal nolisp
-setlocal nosmartindent
-setlocal autoindent
-setlocal indentkeys+==end,=else,=elsif,=when,=ensure,=rescue
+setlocal indentkeys=0{,0},0),0],!^F,o,O,e
+setlocal indentkeys+==end,=elsif,=when,=ensure,=rescue,==begin,==end
 
 " Only define the function once.
 if exists("*GetRubyIndent")
   finish
 endif
 
+let s:cpo_save = &cpo
+set cpo&vim
+
+" 1. Variables {{{1
+" ============
+
+" Regex of syntax group names that are or delimit string or are comments.
+let s:syng_strcom = '\<ruby\%(String\|StringDelimiter\|ASCIICode' .
+      \ '\|Interpolation\|NoInterpolation\|Escape\|Comment\|Documentation\)\>'
+
+" Regex of syntax group names that are strings or comments.
+let s:syng_strcom2 = '\<ruby\%(String' .
+      \ '\|Interpolation\|NoInterpolation\|Escape\|Comment\|Documentation\)\>'
+
+" Regex of syntax group names that are strings.
+let s:syng_string =
+      \ '\<ruby\%(String\|Interpolation\|NoInterpolation\|Escape\)\>'
+
+" Regex of syntax group names that are strings or documentation.
+let s:syng_stringdoc =
+  \'\<ruby\%(String\|Interpolation\|NoInterpolation\|Escape\|Documentation\)\>'
+
+" Expression used to check whether we should skip a match with searchpair().
+let s:skip_expr =
+      \ "synIDattr(synID(line('.'),col('.'),0),'name') =~ '".s:syng_strcom."'"
+
+" Regex used for words that, at the start of a line, add a level of indent.
+let s:ruby_indent_keywords = '^\s*\zs\<\%(module\|class\|def\|if\|for' .
+      \ '\|while\|until\|else\|elsif\|case\|when\|unless\|begin\|ensure' .
+      \ '\|rescue\)\>' .
+      \ '\|\%([*+/,=:-]\|<<\|>>\)\s*\zs' .
+      \    '\<\%(if\|for\|while\|until\|case\|unless\|begin\)\>'
+
+" Regex used for words that, at the start of a line, remove a level of indent.
+let s:ruby_deindent_keywords =
+      \ '^\s*\zs\<\%(ensure\|else\|rescue\|elsif\|when\|end\)\>'
+
+" Regex that defines the start-match for the 'end' keyword.
+"let s:end_start_regex = '\%(^\|[^.]\)\<\%(module\|class\|def\|if\|for\|while\|until\|case\|unless\|begin\|do\)\>'
+" TODO: the do here should be restricted somewhat (only at end of line)?
+let s:end_start_regex = '^\s*\zs\<\%(module\|class\|def\|if\|for' .
+      \ '\|while\|until\|case\|unless\|begin\)\>' .
+      \ '\|\%([*+/,=:-]\|<<\|>>\)\s*\zs' .
+      \    '\<\%(if\|for\|while\|until\|case\|unless\|begin\)\>' .
+      \ '\|\<do\>'
+
+" Regex that defines the middle-match for the 'end' keyword.
+let s:end_middle_regex = '\<\%(ensure\|else\|\%(\%(^\|;\)\s*\)\@<=\<rescue\>\|when\|elsif\)\>'
+
+" Regex that defines the end-match for the 'end' keyword.
+let s:end_end_regex = '\%(^\|[^.]\)\@<=\<end\>'
+
+" Expression used for searchpair() call for finding match for 'end' keyword.
+let s:end_skip_expr = s:skip_expr .
+      \ ' || (expand("<cword>") == "do"' .
+      \ ' && getline(".") =~ "^\\s*\\<while\\|until\\|for\\>")'
+
+" Regex that defines continuation lines, not including (, {, or [.
+let s:continuation_regex = '\%([\\*+/.,=:-]\|\W[|&?]\|||\|&&\)\s*\%(#.*\)\=$'
+
+" Regex that defines continuation lines.
+" TODO: this needs to deal with if ...: and so on
+let s:continuation_regex2 =
+      \ '\%([\\*+/.,=:({[-]\|\W[|&?]\|||\|&&\)\s*\%(#.*\)\=$'
+
+" Regex that defines blocks.
+let s:block_regex =
+      \ '\%(\<do\>\|{\)\s*\%(|\%([*@]\=\h\w*,\=\s*\)\%(,\s*[*@]\=\h\w*\)*|\)\=\s*\%(#.*\)\=$'
+
+" 2. Auxiliary Functions {{{1
+" ======================
+
+" Check if the character at lnum:col is inside a string, comment, or is ascii.
+function s:IsInStringOrComment(lnum, col)
+  return synIDattr(synID(a:lnum, a:col, 0), 'name') =~ s:syng_strcom
+endfunction
+
+" Check if the character at lnum:col is inside a string or comment.
+function s:IsInStringOrComment2(lnum, col)
+  return synIDattr(synID(a:lnum, a:col, 0), 'name') =~ s:syng_strcom2
+endfunction
+
+" Check if the character at lnum:col is inside a string.
+function s:IsInString(lnum, col)
+  return synIDattr(synID(a:lnum, a:col, 0), 'name') =~ s:syng_string
+endfunction
+
+" Check if the character at lnum:col is inside a string or documentation.
+function s:IsInStringOrDocumentation(lnum, col)
+  return synIDattr(synID(a:lnum, a:col, 0), 'name') =~ s:syng_stringdoc
+endfunction
+
+" Find line above 'lnum' that isn't empty, in a comment, or in a string.
+function s:PrevNonBlankNonString(lnum)
+  let in_block = 0
+  let lnum = prevnonblank(a:lnum)
+  while lnum > 0
+    " Go in and out of blocks comments as necessary.
+    " If the line isn't empty (with opt. comment) or in a string, end search.
+    let line = getline(lnum)
+    if line =~ '^=begin$'
+      if in_block
+        let in_block = 0
+      else
+        break
+      endif
+    elseif !in_block && line =~ '^=end$'
+      let in_block = 1
+    elseif !in_block && line !~ '^\s*#.*$' && !(s:IsInStringOrComment(lnum, 1)
+          \ && s:IsInStringOrComment(lnum, strlen(line)))
+      break
+    endif
+    let lnum = prevnonblank(lnum - 1)
+  endwhile
+  return lnum
+endfunction
+
+" Find line above 'lnum' that started the continuation 'lnum' may be part of.
+function s:GetMSL(lnum)
+  " Start on the line we're at and use its indent.
+  let msl = a:lnum
+  let lnum = s:PrevNonBlankNonString(a:lnum - 1)
+  while lnum > 0
+    " If we have a continuation line, or we're in a string, use line as MSL.
+    " Otherwise, terminate search as we have found our MSL already.
+    let line = getline(lnum)
+    let col = match(line, s:continuation_regex2) + 1
+    if (col > 0 && !s:IsInStringOrComment(lnum, col))
+          \ || s:IsInString(lnum, strlen(line))
+      let msl = lnum
+    else
+      break
+    endif
+    let lnum = s:PrevNonBlankNonString(lnum - 1)
+  endwhile
+  return msl
+endfunction
+
+" Check if line 'lnum' has more opening brackets than closing ones.
+function s:LineHasOpeningBrackets(lnum)
+  let open_0 = 0
+  let open_2 = 0
+  let open_4 = 0
+  let line = getline(a:lnum)
+  let pos = match(line, '[][(){}]', 0)
+  while pos != -1
+    if !s:IsInStringOrComment(a:lnum, pos + 1)
+      let idx = stridx('(){}[]', line[pos])
+      if idx % 2 == 0
+        let open_{idx} = open_{idx} + 1
+      else
+        let open_{idx - 1} = open_{idx - 1} - 1
+      endif
+    endif
+    let pos = match(line, '[][(){}]', pos + 1)
+  endwhile
+  return (open_0 > 0) . (open_2 > 0) . (open_4 > 0)
+endfunction
+
+function s:Match(lnum, regex)
+  let col = match(getline(a:lnum), a:regex) + 1
+  return col > 0 && !s:IsInStringOrComment(a:lnum, col) ? col : 0
+endfunction
+
+function s:MatchLast(lnum, regex)
+  let line = getline(a:lnum)
+  let col = match(line, '.*\zs' . a:regex)
+  while col != -1 && s:IsInStringOrComment(a:lnum, col)
+    let line = strpart(line, 0, col)
+    let col = match(line, '.*' . a:regex)
+  endwhile
+  return col + 1
+endfunction
+
+" 3. GetRubyIndent Function {{{1
+" =========================
+
 function GetRubyIndent()
-  " Find a non-blank line above the current line.
-  let lnum = prevnonblank(v:lnum - 1)
+  " 3.1. Setup {{{2
+  " ----------
+
+  " Set up variables for restoring position in file.  Could use v:lnum here.
+  let vcol = col('.')
+
+  " 3.2. Work on the current line {{{2
+  " -----------------------------
+
+  " Get the current line.
+  let line = getline(v:lnum)
+  let ind = -1
+
+  " If we got a closing bracket on an empty line, find its match and indent
+  " according to it.  For parentheses we indent to its column - 1, for the
+  " others we indent to the containing line's MSL's level.  Return -1 if fail.
+  let col = matchend(line, '^\s*[]})]')
+  if col > 0 && !s:IsInStringOrComment(v:lnum, col)
+    call cursor(v:lnum, col)
+    let bs = strpart('(){}[]', stridx(')}]', line[col - 1]) * 2, 2)
+    if searchpair(escape(bs[0], '\['), '', bs[1], 'bW', s:skip_expr) > 0
+      let ind = line[col-1]==')' ? virtcol('.')-1 : indent(s:GetMSL(line('.')))
+    endif
+    return ind
+  endif
+
+  " If we have a =begin or =end set indent to first column.
+  if match(line, '^\s*\%(=begin\|=end\)$') != -1
+    return 0
+  endif
+
+  " If we have a deindenting keyword, find its match and indent to its level.
+  " TODO: this is messy
+  if s:Match(v:lnum, s:ruby_deindent_keywords)
+"    let lnum = s:PrevNonBlankNonString(v:lnum - 1)
+"
+"    if lnum == 0
+"      return 0
+"    endif
+"
+"    return indent(v:lnum) - &sw
+    call cursor(v:lnum, 1)
+    if searchpair(s:end_start_regex, s:end_middle_regex, s:end_end_regex, 'bW',
+            \ s:end_skip_expr) > 0
+      if strpart(getline('.'), 0, col('.') - 1) =~ '=\s*'
+        let ind = virtcol('.') - 1
+      else
+        let ind = indent('.')
+      endif
+    endif
+    return ind
+  endif
+
+  " If we are in a multi-line string or line-comment, don't do anything to it.
+  if s:IsInStringOrDocumentation(v:lnum, matchend(line, '^\s*') + 1)
+    return indent('.')
+  endif
+
+  " 3.3. Work on the previous line. {{{2
+  " -------------------------------
+
+  " Find a non-blank, non-multi-line string line above the current line.
+  let lnum = s:PrevNonBlankNonString(v:lnum - 1)
 
   " At the start of the file use zero indent.
   if lnum == 0
     return 0
   endif
 
-  " If the line trailed with [*+,.(] - but not in a comment - trust the user
-  if getline(lnum) =~ '\(\[^#\].*\)?\(\*\|\.\|+\|,\|(\)\(\s*#.*\)\=$'
-    return -1
-  endif
-
-  " Add a 'shiftwidth' after lines beginning with:
-  " module, class, dev, if, for, while, until, else, elsif, case, when, {
+  " Set up variables for current line.
+  let line = getline(lnum)
   let ind = indent(lnum)
-  let flag = 0
-  if getline(lnum) =~ '^\s*\(module\>\|class\>\|def\>\|if\>\|for\>\|while\>\|until\>\|else\>\|elsif\>\|case\>\|when\>\|unless\|begin\|ensure\>\|rescue\>\)'
-	\ || getline(lnum) =~ '{\s*$'
-	\ || getline(lnum) =~ '\({\|\<do\>\).*|.*|\s*$'
-	\ || getline(lnum) =~ '\<do\>\(\s*#.*\)\=$'
-    let ind = ind + &sw
-    let flag = 1
+
+  " If the previous line ended with a block opening, add a level of indent.
+  if s:Match(lnum, s:block_regex)
+    return indent(s:GetMSL(lnum)) + &sw
   endif
 
-  " Subtract a 'shiftwidth' after lines ending with
-  " "end" when they begin with while, if, for, until
-  if flag == 1 && getline(lnum) =~ '\<end\>\(\s*#.*\)\=$'
-    let ind = ind - &sw
+  " If the previous line contained an opening bracket, and we are still in it,
+  " add indent depending on the bracket type.
+  if line =~ '[[({]'
+    let counts = s:LineHasOpeningBrackets(lnum)
+    if counts[0] == '1' && searchpair('(', '', ')', 'bW', s:skip_expr) > 0
+      return virtcol('.')
+    elseif counts[1] == '1' || counts[2] == '1'
+      return ind + &sw
+    else
+      call cursor(v:lnum, vcol)
+    end
   endif
 
-  " Subtract a 'shiftwidth' on end, else and, elsif, when and }
-  if getline(v:lnum) =~ '^\s*\(end\>\|else\>\|elsif\>\|when\>\|ensure\>\|rescue\>\|}\)'
-    let ind = ind - &sw
+  " If the previous line ended with an "end", match that "end"s beginning's
+  " indent.
+  let col = s:Match(lnum, '\%(^\|[^.]\)\<end\>\s*\%(#.*\)\=$')
+  if col > 0
+    call cursor(lnum, col)
+    if searchpair(s:end_start_regex, '', s:end_end_regex, 'bW',
+                \ s:end_skip_expr) > 0
+      let n = line('.')
+      let ind = indent('.')
+      let msl = s:GetMSL(n)
+      if msl != n
+        let ind = indent(msl)
+      end
+      return ind
+    endif
+  end
+
+  let col = s:Match(lnum, s:ruby_indent_keywords)
+  if col > 0
+    call cursor(lnum, col)
+    let ind = virtcol('.') - 1 + &sw
+"    let ind = indent(lnum) + &sw
+    " TODO: make this better (we need to count them) (or, if a searchpair
+    " fails, we know that something is lacking an end and thus we indent a
+    " level
+    if s:Match(lnum, s:end_end_regex)
+      let ind = indent('.')
+    endif
+    return ind
   endif
 
+  " 3.4. Work on the MSL line. {{{2
+  " --------------------------
+
+  " Set up variables to use and search for MSL to the previous line.
+  let p_lnum = lnum
+  let lnum = s:GetMSL(lnum)
+
+  " If the previous line wasn't a MSL and is continuation return its indent.
+  " TODO: the || s:IsInString() thing worries me a bit.
+  if p_lnum != lnum
+    if s:Match(p_lnum,s:continuation_regex)||s:IsInString(p_lnum,strlen(line))
+      return ind
+    endif
+  endif
+
+  " Set up more variables, now that we know we wasn't continuation bound.
+  let line = getline(lnum)
+  let msl_ind = indent(lnum)
+
+  " If the MSL line had an indenting keyword in it, add a level of indent.
+  " TODO: this does not take into account contrived things such as
+  " module Foo; class Bar; end
+  if s:Match(lnum, s:ruby_indent_keywords)
+    let ind = msl_ind + &sw
+    if s:Match(lnum, s:end_end_regex)
+      let ind = ind - &sw
+    endif
+    return ind
+  endif
+
+  " If the previous line ended with [*+/.-=], indent one extra level.
+  if s:Match(lnum, s:continuation_regex)
+    if lnum == p_lnum
+      let ind = msl_ind + &sw
+    else
+      let ind = msl_ind
+    endif
+  endif
+
+  " }}}2
+
   return ind
 endfunction
 
-" vim:sw=2
+" }}}1
+
+let &cpo = s:cpo_save
+unlet s:cpo_save
+
+" vim: nowrap sw=2 sts=2 ts=8 ff=unix: